Federal Register / Vol. 88, No. 244 / Thursday, December 21, 2023 / Rules and Regulations 88223 

1 78 FR 4726 (Jan. 22, 2013). 

2See 12 CFR 1026.35(b)(2)(iii)(C). 

3See 80 FR 59943, 59951 (Oct. 2, 2015). The 

CFPB also issued an interim final rule in March 

2016 to revise certain provisions in Regulation Z to 

effectuate the Helping Expand Lending Practices in 

Rural Communities Act’s amendments to TILA 

(Pub. L. 114–94, sec. 89003, 129 Stat. 1312, 1800– 

01 (2015)). The rule broadened the cohort of 

creditors that may be eligible under TILA for the 

special provisions allowing origination of balloonpayment qualified mortgages and balloon-payment 

high-cost mortgages, as well as for the escrow 

exemption. See 81 FR 16074 (Mar. 25, 2016). 

4Numbers may not multiply to totals shown 

because of rounding. 

Comments 4(a)–2 through –4 discuss 

whether activities with respect to a 

particular closed-end mortgage loan or 

open-end line of credit constitute an 

origination for purposes of § 1003.2(g). 

6. Branches of foreign banks—treated 

as banks. A Federal branch or a Statelicensed or insured branch of a foreign 

bank that meets the definition of a 

‘‘bank’’ under section 3(a)(1) of the 

Federal Deposit Insurance Act (12 

U.S.C. 1813(a)) is a bank for the 

purposes of § 1003.2(g). 

7. Branches and offices of foreign 

banks and other entities—treated as 

nondepository financial institutions. A 

Federal agency, State-licensed agency, 

State-licensed uninsured branch of a 

foreign bank, commercial lending 

company owned or controlled by a 

foreign bank, or entity operating under 

section 25 or 25A of the Federal Reserve 

Act, 12 U.S.C. 601 and 611 (Edge Act 

and agreement corporations) may not 

meet the definition of ‘‘bank’’ under the 

Federal Deposit Insurance Act and may 

thereby fail to satisfy the definition of a 

depository financial institution under 

§ 1003.2(g)(1). An entity is nonetheless 

a financial institution if it meets the 

definition of nondepository financial 

institution under § 1003.2(g)(2). 

* * * * * 

Brian Shearer, 

Senior Advisor, Consumer Financial 

Protection Bureau. 

[FR Doc. 2023–28079 Filed 12–20–23; 8:45 am] 

BILLING CODE 4810–AM–P 

CONSUMER FINANCIAL PROTECTION 

BUREAU 

12 CFR Part 1026 

Truth in Lending Act (Regulation Z) 

Adjustment to Asset-Size Exemption 

Threshold 

AGENCY: Consumer Financial Protection 

Bureau. 

ACTION: Final rule; official 

interpretation. 

SUMMARY: The Consumer Financial 

Protection Bureau (CFPB) is amending 

the official commentary to its 

Regulation Z in order to make annual 

adjustments to the asset-size thresholds 

exempting certain creditors from the 

requirement to establish an escrow 

account for a higher-priced mortgage 

loan (HPML). These changes reflect 

updates to the exemption from the 

escrow requirement in the Truth in 

Lending Act (TILA) for creditors that, 

together with their affiliates that 

regularly extended covered transactions 

secured by first liens, had total assets of 

less than $2 billion (adjusted annually 

for inflation). They also reflect updates 

to the exemption the CFPB added, by 

implementing section 108 of the 

Economic Growth, Regulatory Relief, 

and Consumer Protection Act 

(EGRRCPA), for certain insured 

depository institutions and insured 

credit unions with assets of $10 billion 

or less (adjusted annually for inflation). 

These amendments are based on the 

annual percentage change in the average 

of the Consumer Price Index for Urban 

Wage Earners and Clerical Workers 

(CPI–W). Based on the 4.1 percent 

increase in the average of the CPI–W for 

the 12-month period ending in 

November 2023, the exemption 

threshold for creditors and their 

affiliates that regularly extended 

covered transactions secured by first 

liens is adjusted to $2.640 billion from 

$2.537 billion and the exemption 

threshold for certain insured depository 

institutions and insured credit unions 

with assets of $10 billion or less is 

adjusted to $11.835 billion from $11.374 

billion. 

DATES: This rule is effective on January 

1, 2024. 

FOR FURTHER INFORMATION CONTACT: 

Anna Boadwee and Adrien Fernandez, 

Attorney-Advisors, Office of 

Regulations, at (202) 435–7700. If you 

require this document in an alternative 

electronic format, please contact CFPB_

Accessibility@cfpb.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

Section 129D of TILA generally 

requires creditors to establish escrow 

accounts for certain first-lien higherpriced mortgage loan transactions. 

However, TILA section 129D also 

permits the CFPB to exempt creditors 

from this higher-priced mortgage loan 

escrow requirement if they meet certain 

requirements, including any asset-size 

threshold that the CFPB may establish. 

In the 2013 Escrows Final Rule,1 the 

CFPB established an asset-size threshold 

of $2 billion, which would adjust 

automatically each year, based on the 

year-to-year change in the average of the 

CPI–W for each 12-month period ending 

in November, with rounding to the 

nearest million dollars.2 In 2015, the 

CFPB revised the asset-size threshold 

for small creditors and how it applies. 

The CFPB included in the calculation of 

the asset-size threshold the assets of the 

creditor’s affiliates that regularly 

extended covered transactions secured 

by first liens during the applicable 

period and added a grace period to 

allow an otherwise eligible creditor that 

exceeded the asset limit in the 

preceding calendar year (but not in the 

calendar year before the preceding year) 

to continue to operate as a small 

creditor with respect to transactions 

with applications received before April 

1 of the current calendar year.3 For 

2023, the threshold was $2.537 billion. 

During the 12-month period ending in 

November 2023, the average of the CPI– 

W increased by 4.1 percent. As a result, 

the exemption threshold is increased to 

$2.640 billion for 2024.4 Thus, if the 

creditor’s assets together with the assets 

of its affiliates that regularly extended 

first-lien covered transactions during 

calendar year 2023 are less than $2.640 

billion on December 31, 2023, and it 

meets the other requirements of 

§ 1026.35(b)(2)(iii), the creditor will be 

exempt from the escrow-accounts 

requirement for higher-priced mortgage 

loans in 2024 and will also be exempt 

from the escrow-accounts requirement 

for higher-priced mortgage loans for 

purposes of any loan consummated in 

2025 with applications received before 

April 1, 2025. The adjustment to the 

escrows asset-size exemption threshold 

also will increase the threshold for 

small-creditor portfolio and balloonpayment qualified mortgages under 

Regulation Z. The requirements for 

small-creditor portfolio qualified 

mortgages at § 1026.43(e)(5)(i)(D) 

reference the asset threshold in 

§ 1026.35(b)(2)(iii)(C). Likewise, the 

requirements for balloon-payment 

qualified mortgages at § 1026.43(f)(1)(vi) 

reference the asset threshold in 

§ 1026.35(b)(2)(iii)(C). Under 

§ 1026.32(d)(1)(ii)(C), balloon-payment 

qualified mortgages that satisfy all 

applicable criteria in § 1026.43(f)(1)(i) 

through (vi) and (f)(2), including being 

made by creditors that have (together 

with certain affiliates) total assets below 

the threshold in § 1026.35(b)(2)(iii)(C), 

are also excepted from the prohibition 

on balloon payments for high-cost 

mortgages. 

In the 2018 Economic Growth, 

Regulatory Relief, and Consumer 


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5Public Law 115–174, 132 Stat. 1296 (2018). 

6EGRRCPA sec. 108, 132 Stat. 1304–05; 15 U.S.C. 

1639d(c)(2). 

7 86 FR 9840 (Feb. 17, 2021). 

8Numbers may not multiply to totals shown 

because of rounding. 

9 5 U.S.C. 603(a), 604(a). 

10 44 U.S.C. 3506; 5 CFR part 1320. 

Protection Act (EGRRCPA),5 Congress 

directed the CFPB to issue regulations to 

add a new exemption from TILA’s 

escrow requirement that exempts 

transactions by certain insured 

depository institutions and insured 

credit unions.6 In 2021, the CFPB issued 

a final rule implementing this 

exemption in § 1026.35(b)(2)(vi) (2021 

Escrows Rule).7 The final rule exempted 

from the Regulation Z HPML escrow 

requirement any loan made by an 

insured depository institution or 

insured credit union and secured by a 

first lien on the principal dwelling of a 

consumer if: (1) the institution has 

assets of $10 billion or less; (2) the 

institution and its affiliates originated 

1,000 or fewer loans secured by a first 

lien on a principal dwelling during the 

preceding calendar year; and (3) certain 

of the existing HPML escrow exemption 

criteria are met. In the 2021 Escrows 

Rule, the CFPB established an asset-size 

threshold of $10 billion or less in 

§ 1026.35(b)(2)(vi)(A), which will adjust 

automatically each year, based on the 

year-to-year change in the average of the 

CPI–W, not seasonally adjusted, for each 

12-month period ending in November, 

with rounding to the nearest million 

dollars. Unlike the asset threshold in 

§ 1026.35(b)(2)(iii) and the other 

thresholds in § 1026.35(b)(2)(vi), 

affiliates are not considered in 

calculating compliance with this asset 

threshold. For calendar year 2023, the 

asset threshold was $11.374 billion. 

During the 12-month period ending in 

November 2023, the average of the CPI– 

W increased by 4.1 percent. As a result, 

the exemption threshold is increased to 

$11.835 billion for 2024.8 Thus, a 

creditor that is an insured depository 

institution or insured credit union that 

during calendar year 2023 had assets of 

$11.835 billion or less on December 31, 

2023, satisfies this criterion for purposes 

of any loan consummated in 2024 and 

for purposes of any loan secured by a 

first lien on a principal dwelling of a 

consumer consummated in 2025 for 

which the application was received 

before April 1, 2025. 

II. Procedural Requirements 

A. Administrative Procedure Act 

Under the Administrative Procedure 

Act (APA), notice and opportunity for 

public comment are not required if the 

CFPB finds that notice and public 

comment are impracticable, 

unnecessary, or contrary to the public 

interest. 5 U.S.C. 553(b)(B). Pursuant to 

this final rule, comment 35(b)(2)(iii)–1 

in Regulation Z is amended to update 

the exemption threshold in 

§ 1026.35(b)(2)(iii) and comment 

35(b)(2)(vi)(A)–1 in Regulation Z is 

amended to update the exemption 

threshold in § 1026.35(b)(2)(vi). The 

amendments in this final rule are 

technical and merely apply the formulae 

previously established in Regulation Z 

for determining any adjustments to the 

exemption thresholds. For these 

reasons, the CFPB has determined that 

publishing a notice of proposed 

rulemaking and providing opportunity 

for public comment are unnecessary. 

Therefore, the amendments are adopted 

in final form. 

Section 553(d) of the APA generally 

requires publication of a final rule not 

less than 30 days before its effective 

date, except (1) a substantive rule which 

grants or recognizes an exemption or 

relieves a restriction; (2) interpretive 

rules and statements of policy; or (3) as 

otherwise provided by the agency for 

good cause found and published with 

the rule. 5 U.S.C. 553(d). At a minimum, 

the CFPB has determined the 

amendments fall under the third 

exception to section 553(d). The CFPB 

finds that there is good cause to make 

the amendments effective on January 1, 

2024. The amendment in this final rule 

is technical and non-discretionary, and 

it merely applies the method previously 

established in the agency’s regulations 

for automatic adjustments to the 

threshold. 

B. Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

does not apply to a rulemaking where a 

general notice of proposed rulemaking 

is not required.9 As noted previously, 

the CFPB has determined that it is 

unnecessary to publish a general notice 

of proposed rulemaking for this final 

rule. Accordingly, the RFA’s 

requirement relating to an initial and 

final regulatory flexibility analysis does 

not apply. 

C. Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act of 1995,10 the CFPB 

reviewed this final rule. The CFPB has 

determined that this rule does not create 

any new information collections or 

substantially revise any existing 

collections. 

D. Congressional Review Act 

Pursuant to the Congressional Review 

Act (5 U.S.C. 801 et seq.), the CFPB will 

submit a report containing this rule and 

other required information to the United 

States Senate, the United States House 

of Representatives, and the Comptroller 

General of the United States prior to the 

rule taking effect. The Office of 

Information and Regulatory Affairs 

(OIRA) has designated this rule as not 

a ‘‘major rule’’ as defined by 5 U.S.C. 

804(2). 

List of Subjects in 12 CFR Part 1026 

Advertising, Banks, banking, 

Consumer protection, Credit, Credit 

unions, Mortgages, National banks, 

Reporting and recordkeeping 

requirements, Savings associations, 

Truth-in-lending. 

Authority and Issuance 

For the reasons set forth above, the 

CFPB amends Regulation Z, 12 CFR part 

1026, as set forth below: 

PART 1026—TRUTH IN LENDING 

(REGULATION Z) 

■ 1. The authority citation for part 1026 

continues to read as follows: 

Authority: 12 U.S.C. 2601, 2603–2605, 

2607, 2609, 2617, 3353, 5511, 5512, 5532, 

5581; 15 U.S.C. 1601 et seq. 

■ 2. In supplement I to part 1026, under 

§ 1026.35—Requirements for HigherPriced Mortgage Loans, 35(b)(2) 

Exemptions, paragraphs 35(b)(2)(iii) and 

(b)(2)(vi)(A) are revised to read as 

follows: 

Supplement I to Part 1026—Official 

Interpretations 

* * * * * 

Subpart E—Special Rules for Certain 

Home Mortgage Transactions 

* * * * * 

Section 1026.35—Requirements for 

Higher-Priced Mortgage Loans 

* * * * * 

35(b)(2) Exemptions. 

* * * * * 

Paragraph 35(b)(2)(iii). 

1. Requirements for exemption. Under 

§ 1026.35(b)(2)(iii), except as provided 

in § 1026.35(b)(2)(v), a creditor need not 

establish an escrow account for taxes 

and insurance for a higher-priced 

mortgage loan, provided the following 

four conditions are satisfied when the 

higher-priced mortgage loan is 

consummated: 

i. During the preceding calendar year, 

or during either of the two preceding 

calendar years if the application for the 


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loan was received before April 1 of the 

current calendar year, a creditor 

extended a first-lien covered 

transaction, as defined in 

§ 1026.43(b)(1), secured by a property 

located in an area that is either ‘‘rural’’ 

or ‘‘underserved,’’ as set forth in 

§ 1026.35(b)(2)(iv). 

A. In general, whether the rural-orunderserved test is satisfied depends on 

the creditor’s activity during the 

preceding calendar year. However, if the 

application for the loan in question was 

received before April 1 of the current 

calendar year, the creditor may instead 

meet the rural-or-underserved test based 

on its activity during the next-to-last 

calendar year. This provides creditors 

with a grace period if their activity 

meets the rural-or-underserved test (in 

§ 1026.35(b)(2)(iii)(A)) in one calendar 

year but fails to meet it in the next 

calendar year. 

B. A creditor meets the rural-orunderserved test for any higher-priced 

mortgage loan consummated during a 

calendar year if it extended a first-lien 

covered transaction in the preceding 

calendar year secured by a property 

located in a rural-or-underserved area. If 

the creditor does not meet the rural-orunderserved test in the preceding 

calendar year, the creditor meets this 

condition for a higher-priced mortgage 

loan consummated during the current 

calendar year only if the application for 

the loan was received before April 1 of 

the current calendar year and the 

creditor extended a first-lien covered 

transaction during the next-to-last 

calendar year that is secured by a 

property located in a rural or 

underserved area. The following 

examples are illustrative: 

1. Assume that a creditor extended 

during 2016 a first-lien covered 

transaction that is secured by a property 

located in a rural or underserved area. 

Because the creditor extended a firstlien covered transaction during 2016 

that is secured by a property located in 

a rural or underserved area, the creditor 

can meet this condition for exemption 

for any higher-priced mortgage loan 

consummated during 2017. 

2. Assume that a creditor did not 

extend during 2016 a first-lien covered 

transaction secured by a property that is 

located in a rural or underserved area. 

Assume further that the same creditor 

extended during 2015 a first-lien 

covered transaction that is located in a 

rural or underserved area. Assume 

further that the creditor consummates a 

higher-priced mortgage loan in 2017 for 

which the application was received in 

November 2017. Because the creditor 

did not extend during 2016 a first-lien 

covered transaction secured by a 

property that is located in a rural or 

underserved area, and the application 

was received on or after April 1, 2017, 

the creditor does not meet this 

condition for exemption. However, 

assume instead that the creditor 

consummates a higher-priced mortgage 

loan in 2017 based on an application 

received in February 2017. The creditor 

meets this condition for exemption for 

this loan because the application was 

received before April 1, 2017, and the 

creditor extended during 2015 a firstlien covered transaction that is located 

in a rural or underserved area. 

ii. The creditor and its affiliates 

together extended no more than 2,000 

covered transactions, as defined in 

§ 1026.43(b)(1), secured by first liens, 

that were sold, assigned, or otherwise 

transferred by the creditor or its 

affiliates to another person, or that were 

subject at the time of consummation to 

a commitment to be acquired by another 

person, during the preceding calendar 

year or during either of the two 

preceding calendar years if the 

application for the loan was received 

before April 1 of the current calendar 

year. For purposes of 

§ 1026.35(b)(2)(iii)(B), a transfer of a 

first-lien covered transaction to 

‘‘another person’’ includes a transfer by 

a creditor to its affiliate. 

A. In general, whether this condition 

is satisfied depends on the creditor’s 

activity during the preceding calendar 

year. However, if the application for the 

loan in question is received before April 

1 of the current calendar year, the 

creditor may instead meet this condition 

based on activity during the next-to-last 

calendar year. This provides creditors 

with a grace period if their activity falls 

at or below the threshold in one 

calendar year but exceeds it in the next 

calendar year. 

B. For example, assume that in 2015 

a creditor and its affiliates together 

extended 1,500 loans that were sold, 

assigned, or otherwise transferred by the 

creditor or its affiliates to another 

person, or that were subject at the time 

of consummation to a commitment to be 

acquired by another person, and 2,500 

such loans in 2016. Because the 2016 

transaction activity exceeds the 

threshold but the 2015 transaction 

activity does not, the creditor satisfies 

this condition for exemption for a 

higher-priced mortgage loan 

consummated during 2017 if the 

creditor received the application for the 

loan before April 1, 2017, but does not 

satisfy this condition for a higher-priced 

mortgage loan consummated during 

2017 if the application for the loan was 

received on or after April 1, 2017. 

C. For purposes of 

§ 1026.35(b)(2)(iii)(B), extensions of 

first-lien covered transactions, during 

the applicable time period, by all of a 

creditor’s affiliates, as ‘‘affiliate’’ is 

defined in § 1026.32(b)(5), are counted 

toward the threshold in this section. 

‘‘Affiliate’’ is defined in § 1026.32(b)(5) 

as ‘‘any company that controls, is 

controlled by, or is under common 

control with another company, as set 

forth in the Bank Holding Company Act 

of 1956 (12 U.S.C. 1841 et seq.).’’ Under 

the Bank Holding Company Act, a 

company has control over a bank or 

another company if it directly or 

indirectly or acting through one or more 

persons owns, controls, or has power to 

vote 25 per centum or more of any class 

of voting securities of the bank or 

company; it controls in any manner the 

election of a majority of the directors or 

trustees of the bank or company; or the 

Federal Reserve Board determines, after 

notice and opportunity for hearing, that 

the company directly or indirectly 

exercises a controlling influence over 

the management or policies of the bank 

or company. 12 U.S.C. 1841(a)(2). 

iii. As of the end of the preceding 

calendar year, or as of the end of either 

of the two preceding calendar years if 

the application for the loan was 

received before April 1 of the current 

calendar year, the creditor and its 

affiliates that regularly extended 

covered transactions secured by first 

liens, together, had total assets that are 

less than the applicable annual asset 

threshold. 

A. For purposes of 

§ 1026.35(b)(2)(iii)(C), in addition to the 

creditor’s assets, only the assets of a 

creditor’s ‘‘affiliate’’ (as defined by 

§ 1026.32(b)(5)) that regularly extended 

covered transactions (as defined by 

§ 1026.43(b)(1)) secured by first liens, 

are counted toward the applicable 

annual asset threshold. See comment 

35(b)(2)(iii)–1.ii.C for discussion of 

definition of ‘‘affiliate.’’ 

B. Only the assets of a creditor’s 

affiliate that regularly extended first-lien 

covered transactions during the 

applicable period are included in 

calculating the creditor’s assets. The 

meaning of ‘‘regularly extended’’ is 

based on the number of times a person 

extends consumer credit for purposes of 

the definition of ‘‘creditor’’ in 

§ 1026.2(a)(17). Because covered 

transactions are ‘‘transactions secured 

by a dwelling,’’ consistent with 

§ 1026.2(a)(17)(v), an affiliate regularly 

extended covered transactions if it 

extended more than five covered 

transactions in a calendar year. Also 

consistent with § 1026.2(a)(17)(v), 

because a covered transaction may be a 


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88226 Federal Register / Vol. 88, No. 244 / Thursday, December 21, 2023 / Rules and Regulations 

high-cost mortgage subject to § 1026.32, 

an affiliate regularly extends covered 

transactions if, in any 12-month period, 

it extends more than one covered 

transaction that is subject to the 

requirements of § 1026.32 or one or 

more such transactions through a 

mortgage broker. Thus, if a creditor’s 

affiliate regularly extended first-lien 

covered transactions during the 

preceding calendar year, the creditor’s 

assets as of the end of the preceding 

calendar year, for purposes of the asset 

limit, take into account the assets of that 

affiliate. If the creditor, together with its 

affiliates that regularly extended firstlien covered transactions, exceeded the 

asset limit in the preceding calendar 

year—to be eligible to operate as a small 

creditor for transactions with 

applications received before April 1 of 

the current calendar year—the assets of 

the creditor’s affiliates that regularly 

extended covered transactions in the 

year before the preceding calendar year 

are included in calculating the creditor’s 

assets. 

C. If multiple creditors share 

ownership of a company that regularly 

extended first-lien covered transactions, 

the assets of the company count toward 

the asset limit for a co-owner creditor if 

the company is an ‘‘affiliate,’’ as defined 

in § 1026.32(b)(5), of the co-owner 

creditor. Assuming the company is not 

an affiliate of the co-owner creditor by 

virtue of any other aspect of the 

definition (such as by the company and 

co-owner creditor being under common 

control), the company’s assets are 

included toward the asset limit of the 

co-owner creditor only if the company 

is controlled by the co-owner creditor, 

‘‘as set forth in the Bank Holding 

Company Act.’’ If the co-owner creditor 

and the company are affiliates (by virtue 

of any aspect of the definition), the coowner creditor counts all of the 

company’s assets toward the asset limit, 

regardless of the co-owner creditor’s 

ownership share. Further, because the 

co-owner and the company are mutual 

affiliates the company also would count 

all of the co-owner’s assets towards its 

own asset limit. See comment 

35(b)(2)(iii)–1.ii.C for discussion of the 

definition of ‘‘affiliate.’’ 

D. A creditor satisfies the criterion in 

§ 1026.35(b)(2)(iii)(C) for purposes of 

any higher-priced mortgage loan 

consummated during 2016, for example, 

if the creditor (together with its affiliates 

that regularly extended first-lien 

covered transactions) had total assets of 

less than the applicable asset threshold 

on December 31, 2015. A creditor that 

(together with its affiliates that regularly 

extended first-lien covered transactions) 

did not meet the applicable asset 

threshold on December 31, 2015, 

satisfies this criterion for a higherpriced mortgage loan consummated 

during 2016 if the application for the 

loan was received before April 1, 2016, 

and the creditor (together with its 

affiliates that regularly extended firstlien covered transactions) had total 

assets of less than the applicable asset 

threshold on December 31, 2014. 

E. Under § 1026.35(b)(2)(iii)(C), the 

$2,000,000,000 asset threshold adjusts 

automatically each year based on the 

year-to-year change in the average of the 

Consumer Price Index for Urban Wage 

Earners and Clerical Workers, not 

seasonally adjusted, for each 12-month 

period ending in November, with 

rounding to the nearest million dollars. 

The Bureau will publish notice of the 

asset threshold each year by amending 

this comment. For calendar year 2024, 

the asset threshold is $2,640,000,000. A 

creditor that together with the assets of 

its affiliates that regularly extended 

first-lien covered transactions during 

calendar year 2023 has total assets of 

less than $2,640,000,000 on December 

31, 2023, satisfies this criterion for 

purposes of any loan consummated in 

2024 and for purposes of any loan 

consummated in 2025 for which the 

application was received before April 1, 

2025. For historical purposes: 

1. For calendar year 2013, the asset 

threshold was $2,000,000,000. Creditors 

that had total assets of less than 

$2,000,000,000 on December 31, 2012, 

satisfied this criterion for purposes of 

the exemption during 2013. 

2. For calendar year 2014, the asset 

threshold was $2,028,000,000. Creditors 

that had total assets of less than 

$2,028,000,000 on December 31, 2013, 

satisfied this criterion for purposes of 

the exemption during 2014. 

3. For calendar year 2015, the asset 

threshold was $2,060,000,000. Creditors 

that had total assets of less than 

$2,060,000,000 on December 31, 2014, 

satisfied this criterion for purposes of 

any loan consummated in 2015 and, if 

the creditor’s assets together with the 

assets of its affiliates that regularly 

extended first-lien covered transactions 

during calendar year 2014 were less 

than that amount, for purposes of any 

loan consummated in 2016 for which 

the application was received before 

April 1, 2016. 

4. For calendar year 2016, the asset 

threshold was $2,052,000,000. A 

creditor that together with the assets of 

its affiliates that regularly extended 

first-lien covered transactions during 

calendar year 2015 had total assets of 

less than $2,052,000,000 on December 

31, 2015, satisfied this criterion for 

purposes of any loan consummated in 

2016 and for purposes of any loan 

consummated in 2017 for which the 

application was received before April 1, 

2017. 

5. For calendar year 2017, the asset 

threshold was $2,069,000,000. A 

creditor that together with the assets of 

its affiliates that regularly extended 

first-lien covered transactions during 

calendar year 2016 had total assets of 

less than $2,069,000,000 on December 

31, 2016, satisfied this criterion for 

purposes of any loan consummated in 

2017 and for purposes of any loan 

consummated in 2018 for which the 

application was received before April 1, 

2018. 

6. For calendar year 2018, the asset 

threshold was $2,112,000,000. A 

creditor that together with the assets of 

its affiliates that regularly extended 

first-lien covered transactions during 

calendar year 2017 had total assets of 

less than $2,112,000,000 on December 

31, 2017, satisfied this criterion for 

purposes of any loan consummated in 

2018 and for purposes of any loan 

consummated in 2019 for which the 

application was received before April 1, 

2019. 

7. For calendar year 2019, the asset 

threshold was $2,167,000,000. A 

creditor that together with the assets of 

its affiliates that regularly extended 

first-lien covered transactions during 

calendar year 2018 had total assets of 

less than $2,167,000,000 on December 

31, 2018, satisfied this criterion for 

purposes of any loan consummated in 

2019 and for purposes of any loan 

consummated in 2020 for which the 

application was received before April 1, 

2020. 

8. For calendar year 2020, the asset 

threshold was $2,202,000,000. A 

creditor that together with the assets of 

its affiliates that regularly extended 

first-lien covered transactions during 

calendar year 2019 had total assets of 

less than $2,202,000,000 on December 

31, 2019, satisfied this criterion for 

purposes of any loan consummated in 

2020 and for purposes of any loan 

consummated in 2021 for which the 

application was received before April 1, 

2021. 

9. For calendar year 2021, the asset 

threshold was $2,230,000,000. A 

creditor that together with the assets of 

its affiliates that regularly extended 

first-lien covered transactions during 

calendar year 2020 had total assets of 

less than $2,230,000,000 on December 

31, 2020, satisfied this criterion for 

purposes of any loan consummated in 

2021 and for purposes of any loan 

consummated in 2022 for which the 

application was received before April 1, 

2022. 


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Federal Register / Vol. 88, No. 244 / Thursday, December 21, 2023 / Rules and Regulations 88227 

10. For calendar year 2022, the asset 

threshold was $2,336,000,000. A 

creditor that together with the assets of 

its affiliates that regularly extended 

first-lien covered transactions during 

calendar year 2021 had total assets of 

less than $2,336,000,000 on December 

31, 2021, satisfied this criterion for 

purposes of any loan consummated in 

2022 and for purposes of any loan 

consummated in 2023 for which the 

application was received before April 1, 

2023. 

11. For calendar year 2023, the asset 

threshold was $2,537,000,000. A 

creditor that together with the assets of 

its affiliates that regularly extended 

first-lien covered transactions during 

calendar year 2022 had total assets of 

less than $2,537,000,000 on December 

31, 2022, satisfied this criterion for 

purposes of any loan consummated in 

2023 and for purposes of any loan 

consummated in 2024 for which the 

application was received before April 1, 

2024. 

iv. The creditor and its affiliates do 

not maintain an escrow account for any 

mortgage transaction being serviced by 

the creditor or its affiliate at the time the 

transaction is consummated, except as 

provided in § 1026.35(b)(2)(iii)(D)(1) 

and (2). Thus, the exemption applies, 

provided the other conditions of 

§ 1026.35(b)(2)(iii) (or, if applicable, the 

conditions for the exemption in 

§ 1026.35(b)(2)(vi)) are satisfied, even if 

the creditor previously maintained 

escrow accounts for mortgage loans, 

provided it no longer maintains any 

such accounts except as provided in 

§ 1026.35(b)(2)(iii)(D)(1) and (2). Once a 

creditor or its affiliate begins escrowing 

for loans currently serviced other than 

those addressed in 

§ 1026.35(b)(2)(iii)(D)(1) and (2), 

however, the creditor and its affiliate 

become ineligible for the exemption in 

§ 1026.35(b)(2)(iii) and (vi) on higherpriced mortgage loans they make while 

such escrowing continues. Thus, as long 

as a creditor (or its affiliate) services and 

maintains escrow accounts for any 

mortgage loans, other than as provided 

in § 1026.35(b)(2)(iii)(D)(1) and (2), the 

creditor will not be eligible for the 

exemption for any higher-priced 

mortgage loan it may make. For 

purposes of § 1026.35(b)(2)(iii) and (vi), 

a creditor or its affiliate ‘‘maintains’’ an 

escrow account only if it services a 

mortgage loan for which an escrow 

account has been established at least 

through the due date of the second 

periodic payment under the terms of the 

legal obligation. 

* * * * * 

Paragraph 35(b)(2)(vi)(A). 

1. The asset threshold in 

§ 1026.35(b)(2)(vi)(A) will adjust 

automatically each year, based on the 

year-to-year change in the average of the 

Consumer Price Index for Urban Wage 

Earners and Clerical Workers, not 

seasonally adjusted, for each 12-month 

period ending in November, with 

rounding to the nearest million dollars. 

Unlike the asset threshold in 

§ 1026.35(b)(2)(iii) and the other 

thresholds in § 1026.35(b)(2)(vi), 

affiliates are not considered in 

calculating compliance with this 

threshold. The Bureau will publish 

notice of the asset threshold each year 

by amending this comment. For 

calendar year 2024, the asset threshold 

is $11,835,000,000. A creditor that is an 

insured depository institution or 

insured credit union that during 

calendar year 2023 had assets of 

$11,835,000,000 or less on December 31, 

2023, satisfies this criterion for purposes 

of any loan consummated in 2024 and 

for purposes of any loan secured by a 

first lien on a principal dwelling of a 

consumer consummated in 2025 for 

which the application was received 

before April 1, 2025. For historical 

purposes: 

1. For calendar year 2021, the asset 

threshold was $10,000,000,000. 

Creditors that had total assets of 

10,000,000,000 or less on December 31, 

2020, satisfied this criterion for 

purposes of any loan consummated in 

2021 and for purposes of any loan 

secured by a first lien on a principal 

dwelling of a consumer consummated 

in 2022 for which the application was 

received before April 1, 2022. 

2. For calendar year 2022, the asset 

threshold was $10,473,000,000. 

Creditors that had total assets of 

$10,473,000,000 or less on December 31, 

2021, satisfied this criterion for 

purposes of any loan consummated in 

2022 and for purposes of any loan 

secured by a first lien on a principal 

dwelling of a consumer consummated 

in 2023 for which the application was 

received before April 1, 2023. 

3. For calendar year 2023, the asset 

threshold is $11,374,000,000. A creditor 

that is an insured depository institution 

or insured credit union that during 

calendar year 2022 had assets of 

$11,374,000,000 or less on December 31, 

2022, satisfied this criterion for 

purposes of any loan consummated in 

2023 and for purposes of any loan 

secured by a first lien on a principal 

dwelling of a consumer consummated 

in 2024 for which the application was 

received before April 1, 2024. 

* * * * * 

Brian Shearer, 

Senior Advisor, Consumer Financial 

Protection Bureau. 

[FR Doc. 2023–28076 Filed 12–20–23; 8:45 am] 

BILLING CODE 4810–AM–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 73 

[Docket No. FAA–2023–2220; Airspace 

Docket No. 23–AWP–59] 

RIN 2120–AA66 

Amendment of Restricted Area R–2512 

Holtville, CA 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule; correction; 

withdrawal. 

SUMMARY: This action withdraws the 

final rule correction published in the 

Federal Register on December 6, 2023. 

That action incorrectly stated that the 

action would be incorporated by 

reference. The FAA has determined that 

withdrawal of the final rule correction 

is warranted since the action is not 

incorporated by reference. 

DATES: As of date 0901 UTC, December 

21, 2023, the final rule correction 

published December 6, 2023 (88 FR 

84695), is withdrawn. 

FOR FURTHER INFORMATION CONTACT: 

Steven Roff, Rules and Regulations 

Group, Office of Policy, Federal 

Aviation Administration, 800 

Independence Avenue SW, Washington, 

DC 20591; telephone: (202) 267–8783. 

SUPPLEMENTARY INFORMATION: 

History 

The FAA published a final rule in the 

Federal Register for Docket No. FAA– 

2023–2220 (88 FR 78636, November 16, 

2023) that amended restricted area R– 

2512 in the vicinity of Holtville, CA. 

The section of 14 CFR part 73 to be 

amended by the final rule was 

inadvertently stated as § 73.22. The 

correct section of 14 CFR part 73 to be 

amended is § 73.25. 

Subsequently, the FAA published a 

final rule correction in the Federal 

Register for Docket No. FAA–2023–2220 

(88 FR 84695, December 6, 2023) that 

amended restricted area R–2512 in the 

vicinity of Holtville, CA, correcting the 

section of 14 CFR part 73 to be 

amended. That action incorrectly stated 


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